A Look At K-Star Sports

K-Star was just listed recently and yes it has the same story that's needed to be told all over again.. sigh.

Here's OSK IPO coverage of K-Star.

The right stuff was mentioned!

The so-called growth story and for K-Star, it's the double digit growth.

The low PE valuations.

And how do they play the LOW PE VALUATIONS again?

Easy!

As can be seen in the earnings estimate above, OSK estimated a net profit of 52 million for K-star.

Remember... the whole pricing... the whole fair valued is based on the assumption that K-Star earnings should be around 52 million, give or take a couple of million here and there.

Now K-Star reported its earnings on the 20th August 2010.

It was K-Star 2nd quarter earnings and K-Star only managed to make 5.94 million, giving it a half year earnings of only 16.467 million. ( see K-Star posts lower 2Q net profit at RM5.94m )

At this rate, K-Star earnings should only be about some 30 million, give or take a couple of million here or there.

And OSK's fair value was based on the assumption K-Star should earn 52 million.

*roll eyes*

According to that OSK report, K-Star raised some 32.9 million for its IPO and K-Star was listed on the 4th June (postponed from 31 May 2010).

It's now 24 Aug 2010 and on today's Star Biz, there was an article on K-Star: K-Star looks to raise funds

• It is looking at options such as rights issue, share placement and even a dual listing in Taiwan

K-Star wants to raise funds???????????????????????

Errr.... is the Malaysian investing public an atm machine?

Glee!